You would be better off using the File and Transfer Manager to transfer all your files and settings over to the new install.
However, you can set Windows Backup to backup all your files and settings, then restore them from a DVD.
You could also use my Windows.Old restore method, Windows.old folder - Restore into a new installation
. This allows you to just install over your old install, then restores files and settings.
I have not tested that method from Vista to Seven, but I imagine it would work with no problems.